Default Distribution Methods (6 Sample Clauses
The Default Distribution Methods clause establishes the standard procedures for distributing funds, assets, or benefits among parties when no specific distribution instructions are provided elsewhere in the agreement. Typically, this clause outlines the order, timing, and proportions in which distributions are made, such as dividing proceeds equally among shareholders or according to predetermined ownership percentages. Its core practical function is to ensure that, in the absence of explicit directions, there is a clear and fair method for handling distributions, thereby preventing disputes and confusion among parties.
Default Distribution Methods (6. 03). If the Investment Arrangement Documentation does not specify the distribution method which would apply, the following distribution methods are available for a Participant, subject to any limitations in the Plan or the Investment Arrangement Documentation (Choose one or more of (1) through (6).):
Default Distribution Methods (6. 03). If the Investment Arrangement Documentation does not specify the distribution which would apply, the following distribution methods are available for a Participant, subject to any limitations in the Plan or the Investment Arrangement Documentation. (Choose one or more of (1) through (6)):
(1) [ ] Lump-Sum.
(2) [ ] Installments only if Participant subject to lifetime RMDs. A Participant who is required to receive lifetime RMDs may receive installments payable in monthly, quarterly or annual installments equal to or exceeding the annual RMD amount.
(3) [ ] Installments.
(4) [ ] Annuity. Distribution of an Annuity Contract that the Vendor provides or purchases with the Participant's Vested Account Balance.
(5) [ ] Ad-Hoc distributions.
(6) [ ] Describe distribution method(s): .
Default Distribution Methods (6. 03). If the Investment Arrangement Documentation does not specify the distribution which would apply, the following distribution methods are available for a Participant, subject to any limitations in the Plan or the Investment Arrangement Documentation. (Choose one or more of (1) through (6)):
(1) [X] Lump-Sum.
(2) [X] Installments only if Participant subject to lifetime RMDs. A Participant who is required to receive lifetime RMDs may receive installments payable in monthly, quarterly or annual installments equal to or exceeding the annual RMD amount.
(3) [X] Installments.
(4) [ ] Annuity. Distribution of an Annuity Contract that the Vendor provides or purchases with the Participant's Vested Account Balance.
(5) [X] Ad-Hoc distributions.
(6) [ ] Describe distribution method(s): . [Note: The Employer under Election 39(b)(6) may describe Severance from Employment distribution methods from the elections available under Election 39(b) and/or a combination thereof (e.g., as to any Participant group or Accounts). An Employer's election under Election 39(b)(6) must: (i) be objectively determinable; (ii) not be subject to Employer or Plan Administrator discretion; (iii) be nondiscriminatory; and (iv) preserve Protected Benefits as required.]